February 24, 2009
2009 Amended Budget Proposals Emerge
From Subcommittees
Greetings from the Gold Dome! Late today, House Lawmakers began voting out of their Subcommittees today their 2009 Amended Budget proposals. We will report more on the Budget in a later Report.
In other news, several groups were in the State's Capitol to lobby their agenda and be recognized. Among those included various PTA groups and school principals, Georgia's Council on Aging and other elder-care entities, and the Georgia Academy of Audiology.
We would like to express our sympathy to Sen. Renee Unterman (R-Buford) and her family on the death of her son last Friday.
HB 143, the Bill passed by both the House and Senate dealing with the manner and method of appropriating funds for homeowner tax relief grants in Title 45, has now been signed by Governor Perdue as Act No. 1. It adds that if the amount is appropriated in the General Appropriations Act is sufficient to fund the eligible assessed value stated in the General Appropriations Act, then that amount shall not be reduced or withdrawn for any reason.
Floor News
House
The House had a longer day than usual today. Among its work included voting out the "urging" Resolution, by Rep. Smyre (D-Columbus) for the President of the United States and his administration continue the uninterrupted production of the F-22 Raptor. This Resolution, HR 259, cleared the House by a vote of 162 to zero.
HB 64, by Rep. Sims (R-Ambrose), also cleared the House by a vote of 164 to one. HB 64 amends O.C.G.A. § 31-10-15 and would specifically require a funeral director or person acting as such who first assumes custody of a dead body to file the certificate of death of the deceased within 72 hours of receiving such certificate by the appropriate physician or coroner.
HB 331, by Rep. Martin (R-Alpharetta), also passed by a vote of 162 to 7. There were some concerns with this proposal which will increase filing fees for writ of certiorari or appeal from $80 to $300 when such are filed with the Georgia Supreme Court and Georgia Court of Appeals respectively. Rep. Martin argued that such increase could generate $600,000 or more.
Rep. Martin (R-Alpharetta) also presented HB 283, which cleared the House by a vote of 165 to zero. However, this caused some lively discussion as Rep. Franklin (R-Marietta) tried to amend the proposal to address who can actually sit for the State Bar of Georgia examination; his amendment would have essentially done away with the Supreme Court's ability to make that decision (it would have, for instance, permitted a person in good standing of a bar in another state to be admitted to Georgia). Rep. Franklin's amendment was voted down handily by a vote of 30 to 137. The underlying Bill permits the State's Supreme Court, upon recommendation by the board of State Bar Examiners, to set the amount of a "reasonable" examination fee to be paid by the applicants for admission to the bar by examination and strips out the current cap of $90 for such fee.
Lengthy discussion ensued on HB 100, Rep. Ehrhart's proposal on changing certain requirements relating to the operation and taxation of student scholarship organizations in Titles 20 and 48. However, the Bill passed by a vote of 98 to 69.
HB 120 was approved effortlessly by a vote of 165 to zero. Rep. Smith (R-Newnan) offered this Bill to permit sales and use tax exemptions ("holiday") in O.C.G.A. § 48-8-3 for certain school supplies, clothing, footwear, computers, and computer related accessories for a limited period of time (from 12:01 a.m. on July 30, 2009 through midnight on August 2, 2009) and for a similar exemption from sales and use tax with respect to certain sales of certain energy efficient products or water efficient products for a limited period of time (from 12:01 a.m. on October 1, 2009 through midnight on October 4, 2009).
Senate
Some of the Senate's work included the Bills below.
SB 20 passed out of the Senate this morning by a vote of 37 to 9. Sen. Pearson (R-Dawsonville) authored this Bill regarding immigrant verification policing. An amendment was added so that loss of funds by local governments could not include money for the services exempt from immigrant status issues under State and federal law, such as emergency healthcare and births. Under federal law, all nonprofits are exempt from local government reductions to "public" benefits.
SB 38 cleared the Senate by a vote of 43 to zero and now heads to the House. The Bill adds a new Code Section at O.C.G.A. § 45-16-50 which would read:
A medical examiner within the state of Georgia is authorized to provide to an approved canine instructor or school certain biological substances such as human blood or bodily fluids for the sole purpose of utilizing such substances for the training and handling of police canine in body recovery of human remains or rescue of persons. Such biological substances shall be contained and transported in accordance with appropriate health and safety standards
SB 76, relating to law on workers' compensation, also passed out of the Senate by a vote of 45 to zero. The Bill repeals in its entirety O.C.G.A. § 34-9-135 and also amends O.C.G.A. § 33-9-21, relating to maintenance and filing of insurance rates, rating plans, rating systems, or underwriting rules and examination of claim reserve practices by the Commissioner of Insurance and specific disclosure to "costs" for workers' compensation insurance.
SB 79, sponsored by Sen. Harp (R-Midland), passed with a Floor Amendment to conform the provisions relating to public records disclosure with the State law on releasing of public information. Specifically, the language inserted reads:
[P]rovided, however, that any identifying information, including but not limited to the child or caretaker's name, race, ethnicity, address, or telephone numbers and any other information that is privileged or confidential, shall be redacted to preserve the confidentiality of the child, other children in the household, and the child's parents, guardians, custodians, or caretakers. Upon the release of documents pursuant to this subsection, the department may comment publicly on the case.
The underlying proposal, brought by the Office of the Child Advocate Tom Rawlings, would provide for access by certain governmental entities and certain persons to records concerning reports of child abuse and provide that certain records relating to a child fatality or near fatality shall not be confidential. SB passed by a vote of 45 to zero with the Floor Amendment.
SB 89, by Sen. Butler (D-Stone Mountain), passed by a vote of 43 to 4. The Bill would allow the consumption of food and beverages in a rapid rail station or intermodal bus station as long as the public transit system operating such station did not have a policy prohibiting such. Under current law, only re-sealable bottles of water can be consumed.
SB 105 also passed with a vote of 48 to zero. Sen. Hill (R-Marietta) noted that this initiative clarifies and modifies law passed in 2008 relating to health reimbursement arrangements and how employers may establish accounts for their employees to purchase health insurance under Title 33. No amendments were offered on this proposal from the Floor.
New Legislation
SB 199 – Sen. Wiles (R-Marietta) authored a change to O.C.G.A. § 15-9-1.1(c) to suspend, for one year, the required annual training of magistrates and probate judges. Those who have completed all or a portion of the training prior to the effective date of this Bill, if passed and signed, would be credited for required training in 2010.
SB 200 – Sen. Williams (R-Lyons) brought his version of the "Transforming Transportation Investment Act" as announced by the Governor, Lt. Governor. It essentially does away with the State Board of Transportation and creates a new "Authority" and provides for General Assembly approval of transportation projects.
SB 201 – Sen. Balfour (R-Snellville) proposed amendments in Chapter 12 of Title 31 to provide for the voluntary contributions through individual income tax returns and other mechanisms for cancer research. Currently, this type of mechanism is permitted just for breast, prostate, and ovarian cancers.
SB 202 – Sen. Mullis (R-Chickamauga) proposed an amendment to O.C.G.A. § 48-7-40(a)(2) and the definition of "business enterprise" to include those businesses engaged in services for the elderly and persons with disabilities to be eligible for tax credits.
SB 204 – Sen. Shafer (R-Duluth) authored the "Snowflakes Adoption Act of 2009" in Chapter 8 of Title 19 to provide an exclusive means of adopting human embryos and the relinquishment of rights to such embryos (which would occur by the genetic parents to a human embryo prior to implantation). The Bill outlines provisions for "status of prior agreements" regarding embryos.
SB 205 – Sen. Chapman (R-Brunswick) authored this Bill adding a new Code Section at O.C.G.A. § 48-11-3.1 to provide for the utilization of digital based cigarette stamp processes in an effort to ensure against forgery and tax evasion. This stamp will aid the Department of Revenue, creating instant verification.
SB 206 – Sen. Goggans (R-Douglas) offered amendments to Chapter 12 of Title 45 to require tax expenditure reviews as a part of the Budget Report. It would require this report to detail for each tax expenditure item that amount of tax revenue foregone for at least a three-year period, including the period covered in the Governor's Budget as well as an estimate for at least one future year, a citation of the statutory or legal authority for the expenditure and the year in which it was enacted or the tax year in which it became effective. The intended objective for the expenditure is also to be outlined.
SB 207 – Sen. Wiles (R-Marietta) introduced this Bill in Chapter 11 of Title 15 permitting the admission of the general public to hearings in juvenile court with some exceptions; there are also authorizations to close a hearing under exceptional circumstances upon its own motion or by a motion of a party. For instance, adoption hearings would be closed to the public. The court could also exclude a child from a termination of parental rights hearing. There is a media prohibition from publicizing the child's name, identity and likeness involved in such a proceeding.
HB 533 – Rep. Mills (R-Gainesville) offered a new subsection (e) in O.C.G.A. § 40-5-27 to provide that written and oral examinations for drivers' licenses would only be administered in English but temporary license examinations could be done in languages other than English.
HB 535 – Rep. Day (R-Tybee Island) introduced a new Code Section at O.C.G.A. § 25-14-12 to prohibit the sales of novelty cigarette lighters (such as those resembling cartoon characters, toys, guns, watches, musical instruments, etc.). The proposal establishes civil penalties for these violations. It would also require the Department of Revenue and its Commissioner to report any discoveries of these novelties and seize and destroy such.
HB 536 – Rep. Chambers (R-Atlanta) authored a repeal of Article 4 of Chapter 13 of Title 19 concerning the family violence and stalking protective order registry.
HB 537 – Rep. Jacobs (R-Atlanta) proposed a change to O.C.G.A. § 20-2-2065(b) and requirements for the operation of a charter school striking the requirement that the entity must be "organized and operated as a nonprofit corporation" rather inserting that it would be required to be "organized and operated as a nonprofit entity."
HB 538 – Rep. Rice (R-Duluth) authored amendments to Chapter 5 of Title 40 to provide for usage of licensed defensive driving courses in pre-trial diversion programs (used in misdemeanor offenses) and to provide that certificates of completion from unlicensed courses will not be recognized. It also adds in O.C.G.A. § 40-5-83(a) that the Department, on and after July 1, 2010, can charge a fee of not more than $75 for a driver improvement program.
HB 542 – Rep. Coleman (R-Duluth) authored an amendment to O.C.G.A. § 47-4-101 increasing the maximum allowable benefit for retirees under the Public School Employees Retirement System moving the amount of each monthly retirement payment from $15 to $20 multiplied by the number of the member's years of creditable service. The retirement benefits would continue to be based upon the amount of funds appropriated by the General Assembly.
HB 543 – Rep. Lunsford (R-McDonough) authored a change to O.C.G.A. § 43-4-1(l), amending the definition of "athletic injury" which would now be defined as:
Means any injury sustained by a person as a result of such person's participation in exercises, sports, games, or recreation requiring physical strength, agility, flexibility, range of motion, speed, or stamina or any comparable injury which prevents such person's participation in such activities. Nothing in this paragraph shall be construed to require an athletic trainer to provide services in a specific location or type of location.
HB 544 – Rep. Willard (R-Sandy Springs) authored a new Code Section for O.C.G.A. § 15-11-84 to provide for the sharing of confidential information so that governmental entities, state, county, consolidated governments, or municipal government departments, boards or agencies will be required to exchange with each other all information not held as confidential pursuant to federal law and relating to a child which may aid a governmental entity in the assessment, treatment, intervention, or rehabilitation of a child in an effort to serve the best interests of that child. The information will not be utilized to assist in the prosecution of the child in juvenile court or superior court or utilized to the detriment of the child.
HB 545 – Rep. Willard (R-Sandy Springs) introduced changes pertaining to the commencement and service of civil actions and service of process. It permits in O.C.G.A. § 9-11-4(c) the service of a summons by a "certified process server" as outlined in O.C.G.A. § 9-11-4.1. The Bill also adds a new paragraph (4) of subsection (f) of O.C.G.A. § 9-11-4 concerning "service upon persons residing in gated and secured communities." It defines "gated and secured communities" and permits any person authorized to serve process access to the gated and secured communities for a "reasonable period of time" for the purposes of performing lawful service upon: "i) identifying to the guard or managing agent the person, persons, entity, or entities to be served; ii) displaying a current driver's license or other government issued identification which contains a photograph; and iii) displaying evidence of current appointment as a process server pursuant to Code Section 9-11-4.1." It also amends subsection (h) concerning how "returns" of service are filed with the Court (requiring such to be filed within five business days of the service date). It also amends the time calculation that the party served must respond (time begins once the proof of service is filed).
HB 547 – Rep. Hugley (D-Columbus) authored a change to the competencies and core curriculum in Georgia's "Quality Basic Education Act." Specifically, her Bill adds a new Code Section at O.C.G.A. § 20-2-146.1:
a) In the event that state funding is provided to local school systems to offer the PSAT to its students, such state funding shall also be made available for purposes of offering the ACT PLAN assessment to such students.
(b) It shall be the choice of each student as to which preparatory assessment he or she elects to take.
HB 548 – Rep. Dollar (R-Marietta) proposed a change in subsection (e) in O.C.G.A. § 21-2-413 to prohibit the use of text messaging or other communications using mobile devices in the enclosed place in a polling place.
HR 442 – Rep. Day (R-Tybee Island) authored this Resolution to create a House Study Committee on the Review, Evaluation, and Analysis of State Tax Exemptions, looking at consistent, effective and equitable distribution of such exemptions. This Committee would be comprised of eight House Members appointed by the Speaker of the House. It would be abolished on August 31, 2009.
HB 550 – Rep. Meadows (R-Cleveland) offered a change to O.C.G.A. § 33-14-76(b) to provide an additional method of payment by a mutual life insurer of the equity permitting the payment be provided as a "paid-up life insurance policy with a cash value equal to 100 percent of the policyholder's equity in the insurer."
HB 552 – Rep. Barnard (R-Glennville) authored this set of changes to Chapter 5 of Title 12 amending Georgia's law on water well standards. It amends the current standards for wells and boreholes and repeals entirely O.C.G.A. § 12-5-135(i).
HB 553 – Rep. Lunsford (R-McDonough) authored a new Chapter 93 in Title 36 to provide for comprehensive regulation of local government equipment financing. It would create a "Local Government Equipment Financing Authority" who would be the same persons who are municipal elected officials serving as members of the board of trustees of a municipal interlocal risk management agency formed and operational prior to January 1, 2009 pursuant to O.C.G.A. § 36-85-3. This Authority's duties and powers are enumerated in this proposal.
Committee News
Senate Insurance and Labor Committee
SR 108, by Sen. Johnson (R-Savannah), caused a stir amongst various labor organizations as well as some labor and employment lawyers. This Constitutional Amendment would require a "secret ballot" in the work place in order to join a union. If passed, SR 108 would be placed on the ballot for voters to decide in 2010. Some Committee Members raised concerns, including Sens. Ramsey (D-Decatur) and Harbison (D-Columbus). Presently, unions can use either a card (to sign) or a ballot for the purposes of joining a union. SR 108 cleared the Committee by a vote of 7 to 2.
SB 144, by Sen. Shafer (R-Duluth), also passed by Substitute, including an amendment from the Department of Insurance. It eliminates the current requirement that an applicant for an insurance agent license be appointed by an agent of an authorized insurer. It adds a new Code Section at O.C.G.A. § 33-47-4.1: "No licensed managing general agent may charge a fully earned policy fee in connection with the issuance of an insurance policy unless such fee shall be a component of the insurer's rate filing. No fully earned policy fee may exceed $25.00."
The Committee had a hearing on SB 92, by Sen. Hill (R-Marietta), which would convert the Medicaid and PeachCare for Kids programs to "premiums assistance" programs to permit low-income families participate in private sector health insurance plans. The Department of Community Health raised some concerns as did a number of entities providing services to families and children. Some felt that the change from the current program would perhaps not capture the required Early Periodic Screening, Diagnostic and Treatment ("EPSDT") requirements as required for children under federal law; thus, requiring the Department of Community Health to continue to provide such services. Georgia Public Policy Foundation was supportive of the proposal. After a quorum of the Committee was lost, the Chairman indicated to Sen. Hill that he would place the Bill back on the Committee's agenda at its meeting next week.
Senate Transportation Committee
The Committee discussed SB 200, introduced by Senator Williams (R-Lyons). The goal of the SB 200 is to reconfigure the planning and funding authority of the transportation agency. SB 200 will combine the functions of GRTA and SERTA. The Bill will change the way the State Transportation Authority (which would be the old Transportation Board) is selected and will allow the Governor to select five members, the Lt. Governor select three members, and the Speaker select three members of the new Board.
The Legislature would relinquish its appointment powers but it would gain power of the budget and the ability to select 10% of the total projects that the State Transportation Authority undertakes.
The funds of the State Transportation Authority would be divided into three areas: 1) State asset management (includes caring for the existing roads – DOT would continue in this function); 2) State asset management improvement (funding for new projects); 3) local assistance (funds going directly to districts for projects). The local assistance would be 25% of the State Transportation Authority's budget. In the past, local assistance was only 10%-12% of the budget.
There was discussion as to the allocation of funds to the districts. The Bill would take into account the miles in each district, rather than the miles traveled, which is greater in urban areas. Senators from southern counties wanted assurance that their districts would receive a proportionate share of the local assistance funds. Although a guarantee could not be given, the fact that the Legislature would control the purse allows the Senators to have oversight.
Currently, the Bill does not contain language that the Governor's appointments must be ratified by the Legislature as the Lt. Governor's and Speaker's appointments are. There were assurances that the language would be written into law via an amendment. It would put the appointment process in line with gubernatorial appointments on other boards.
House Health & Human Services Committee
This Committee discussed HB 509, by Rep. Cooper (R-Marietta), updating the law governing the Board of Medical Examiners. The law has not been updated in 40 years and this Bill proposed updates in required areas and brings the scope of responsibility of physician assistants ("Pas") in line with that of nurse practitioners. Chairwoman Cooper wanted to clarify that the Bill keeps the PA under the watch of his/her supervising physician.
Dr. Sumner gave a presentation on the highlights of the Bill:
- Increases the number of board members by adding another physician and another consumer member
- The title of "President" will be changed to "Chairperson"
- Permits the Board to require a mental & physical exam for any licensee, including a PA
- Will allow a physician to delegate tasks to a certified medical assistance – current law says that one cannot delegate to unlicensed individuals
- Requires competency evaluations for physicians that go inactive for a number of years (retire) and would then like to reinstate his/her license
- Would not allow the Board to provide provisional licenses, register with superior court, or license institutions.
- Decreases the supervision that a physician has over a PA – the PA must still have an approved job description and practice where the physician practices.
Dr. Williamson, President of the Medical Association of Georgia ("MAG"), spoke to oppose the Bill in its current form and asked the Committee to hold the Bill until the 2010 session. MAG representatives have not had a change to review the legislation in its entirety and would like a compromise with the Board on certain provisions. MAG identified the most problematic areas as:
- Expanded authority of the Board
- Weakening of legal protection for physicians in disciplinary actions
- Reduction of supervision of PAs
- Scope of practice of PAs including prescribing prescriptions, periodic review of charts,
- Extension of the time that prescriptions remain valid
- Generally, the language is too broad
MAG did not disagree with the following provisions of the Bill:
- Permitting consumer members to vote as long as the subject is not physician discipline
- Evaluation of PAs
- PAs having the authority to pronounce someone dead
Faye Brown, on behalf of the Georgia Academy of Family Physicians, delivered four areas of concern with the Bill:
- Eliminating linkage of PA licensure from physicians
- Informing patient right to see physician if he/she has a substance abuse problem
- Removal of record review and cosigning of prescription
- Removal of requirement of physician to periodically see a patient who has been seen by the PA
Danny Orrock, on behalf of Georgia Watchdog, stated that his organization supported HB 509 and strongly supports the addition of another consumer member on the Composite Board of Medical Examiners putting Georgia in line with other southeastern states.
Tom Bauer, representing the Georgia Association of Physician Assistants, reminded the Committee that this is not a PA "reform bill," but a bill for the Board. His organization supports HB 509.
The Committee expressed its concern about postponing this Bill for another year. The Committee wanted, and was disappointed that the Board and MAG had not worked together more to agree on the Bill. However, the Committee voted to move the Bill out of the Committee to the Rules Committee.
House Industrial Relations Committee
The Committee considered HR 22 and HR 23, concerning the right to vote in public votes by secret ballot, and decided to move both out of the Committee.
House Ways and Means Committee
The full House Ways and Means Committee unanimously passed out HB 349, the Civil Rights Museum sales tax exemption.
Sen. Chip Rogers (R-Marietta) spoke to the homeowners' tax exemption SB 83. It would double the amount from $2,000 to $4,000, applying to homesteads only and not commercial property. There would be an inflation adjuster. The idea passed but had one "no" vote.
HB 74 was presented by Rep. O'Neal (R-Bonaire). This is this year's tax "omnibus" Bill. It conforms Georgia's tax law to the Internal Revenue Code. A Fiscal Note was attached noting a $35 million tax savings. Among its provisions is that it allows a one-year write off for investments in small businesses, limited to $250,000. The idea also includes a "look back" provision. The Bill passed out of Committee unanimously.
Sales and Use Tax Subcommittee
This Subcommittee of Ways and Means held a hearing on several initiatives with no votes taken on HB 358 and HB 359 by Rep. Martin (R-Alpharetta) or HB 395 by Rep. Wilkinson (R-Sandy Springs).
Rep. Martin explained HB 358 which would extend the period of exemption for sales and use taxes for food donated and used for hunger relief purposes and disaster relief purposes until June 30, 2011. This current exemption from this tax is set to expire on June 30, 2009.
HB 359 would extend the sales and use tax exemption on certain sales of eligible food and beverages to a qualified food bank to June 30, 2012. The exemption currently permitted under State law expires on June 30, 2010. Representatives from the Atlanta Community Food Bank were in attendance at this hearing to lend support to Rep. Martin's proposal. The Atlanta Community Food Bank is one of eight food banks across the State of Georgia that would benefit by such an exemption.
HB 395 would extend the sales and use tax exemption for certain tangible personal property used in direct connection with the construction of certain symphony halls to September 1, 2015 (it currently expires on September 1, 2009). Rep. Wilkinson explained that the construction for the Atlanta Symphony Orchestra's new venue is set to break ground relatively soon.
House Appropriations Committee
The various Subcommittees of the House Appropriations Committee voted out their portions of the FY 2009 Amended Budget. The hearings were basically perfunctory as really no changes were addressed in any of the various proposals. Additionally, for the most part, there were no questions of substance raised in any of the hearings. The full House Appropriations Committee will meet tomorrow to handle the Budget. There was some inclusion of federal stimulus money in some of the budget areas.
Please contact Stanley S. Jones, Jr., Helen Sloat or April Morgan at 404.322.6000 for further information on legislative happenings. Gold Dome Reports will be available daily during the Session at www.nelsonmullins.com.
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.